(3/31/15)- Next year the value of estates subject to the federal estate tax will
have to exceed $5.43 million, or nearly $11 million for a couple. Senate
Republicans voted in the majority, 54 to 46, to fully repeal the federal estate
tax law, but it is highly unlikely that this will happen when the ultimate
budget is passed.

The budget bills passed separately by the House and the Senate skirted the
limit on military spending by moving to put about $40 billion into a
war-fighting account that does not count against the spending cap for the
military

(1/27/15)- The maximum amount of earnings which you can be taxed for in 2015
is $118,500, up from $117,000 in 2013. Your retirement benefit is based on your
earnings in your 35 highest paid years, after the early years’ pay has been
adjusted upward based on average wage growth over the decade.

The increase in benefits each year that you delay your full retirement age
past your eligible retirement age until 70 is 8% of the benefit at full
retirement age. That means it will go up by the same dollar amount once you get
past 70 if you defer receiving your benefit check until then.

(12/24/13)-“The earnings limit for workers who are younger than “full”
retirement age will be $15,480 (in 2014). The earnings limit for people turning
66 will be $41,400. Your benefits will be reduced if you earn more than these
limits.”(Social Security Administration).

(11/3/13)- The Treasury Department announced a new rule that would permit
employers to allow eligible employees who have flexible spending accounts (FSA)
to roll over up to $500 into the following year. Employers are not required to
do so.

Until this ruling, any unspent money in an employee’s FSA account was lost
if not used. The maximum allowed into an FSA account was reduced to $2,500 in
2013. Under some employer’s plan, an employee gives workers up to 2 ½ months
into the following year to be included in their reimbursable medical expenses.

Under the Treasury ruling, the 2 ½ month extension cannot be utilized if the
employer opts to allow the $500 rollover

(9/9/13)- An average of 35.9% of men 65 to 69 years of age had jobs this
summer, as did 25.6% of women in that age category, according to data released
by the Bureau of Labor Statistics. These were the highest figures for both
sexes since these numbers became available in 1981. The employment rate for
women 70 to 74 was also higher than in any previous summer.

Most experts believe that people are working at older ages than ever before
as a result of the recession and stock market drop of 2008-2009.Younger people
lost jobs and many 401(k)s lost quite a bit of their value causing workers to
delay retirement.

The share of men 60 to 64 with jobs was 57.2%; for women in that age
category, it was 47.1%

(7/31/12)- There are several online tools that are geared towards helping
you make the decision as to when to start taking your Social Security check.
Here is a list of a few of them that are either low-cost or free to use:

Social Security Solutions-socialsecuritysolutions.com

Social Security Choices-socialsecuritychoices.com

Analyzenow.com (click on "Computer Programs"
to get to the Social Security planner

AARP's calculator-aarp.org/work/socialsecurity

Social Security Timing-socialsecuritytiming.com

(7/20/12)- Most individuals covered by an employer's health plan opt out of
Part B, since the premium runs about $1,199 for most people, but can be much
higher if your adjusted gross income runs into the high brackets.

When you stop working, you can sign up for Part B during a special
enrollment period that lasts eight months following your final day of
employment.

The clock for the eight months period of time to be eligible to enroll
starts running when you leave the job

(7/9/12)- One of the tougher choices to decide upon as you get older is;
"should I wait to get my social security check until I reach 'full
retirement age' or should I start taking it as soon as I am eligible to receive
it, even at a reduced level?".

Obviously if you knew when you were going to die, the choice would be made
easy. You must also take into consideration when making this decision how badly
you need the income presently and also how healthy you are now.

After taking everything into consideration, please remember that for every
year you wait, up to the age of 70, you will receive an increase of 8% for each
year that you wait.

In the past you could take your lower payment and then receive the
"full age benefit" by repaying the lesser amount and then opting for
the full benefit. The law was changed, so that this option is no longer
available.

As a widow, you can start with either your survivor benefit or your earned
retirement benefit and then switch to the other benefit at a time you choose.
Also as a widow, you can start one benefit before your full retirement age,
which reduces the amount you receive from that benefit, and then switch to the
other benefit at full retirement age without any reduction.

(6/29/12)- More than 3.5 million Americans between the ages of 45 and 64
were unemployed as of May 2012, 39% of them for a year or more. This is the
highest long -term unemployment rate for this age bracket in history, according
to Department of Labor statistics.

In the 1990s, the unemployment rate among the 45 to 64-year olds peaked at
5.7%, while in the downturn in the 1980s the jobless rate for that age bracket peaked
at 7%. In the present recession, the rate peaked at 8.2%.

(6/20/12)-The Social Security benefit check is calculated based on your
35-year average earnings starting with your highest earnings and working its
way down through the next highest earnings for the 35 years total period of
time. If you have worked for less than 35-years, the non-working years penalize
you, since you would have zero income included for the zero years of earnings.

Earnings from years ago will get adjusted for the rise in inflation over
time. Inflation adjusted earnings may mean some of your earlier lower wages
might have a beneficial impact on your ultimate benefit computation.

(5/20/12)- The latest figures from the Bureau of Labor Statistics show that
the percentage of workers over 65 is at a record high. The Bureau began
publishing these statistics in 1981 and this report covered the period ended
April 30, 2012.

One in nine male Americans over 75 and one in twenty women over 75 years of
age were still working. In the 70 to 74-age category, one in every 5 males and
one in every 12 were still working. For the 65-69-age category the numbers were
about one in every three males and one in every 5 females were still employed.

(4/16/12)- As one gets closer and closer to becoming eligible to receive a
social security age related check, the question arises as to when it is best to
start receiving that check. Should I wait until "full retirement
age", "full retirement age" plus, or take it at an earlier age,
even though that would mean receiving a lower amount?

There are several sources available to help you make this decision. There
are some planners who specialize in helping you with this matter and this
matter only, as opposed to some planners who help you with your overall
financial planning.

You can find advisers who specialize in Social Security analysis at
GarrettPlanningNetwork.com.

There are some sophisticated online tools that let people crunch their own
numbers such as maximizemysocialsecurity.com which was developed by Laurence
Kotlikoff, an economic professor at Boston University, and software engineer
Richard Morrow. Some other choices for you to look at are:
socialsecurity-choices.com and socialsecuritysolutions.com.

You can get an estimate of your benefits at your full retirement age by
using the Social Security Administration's site socialsecurity.gov/estimator.

(4/2/12)- An interesting situation arises if you begin to take your benefit
early, and then decide to return to the workplace, what happens to the amount
that you will then be receiving? When you took your benefit earlier than your
normal retirement age your benefit is reduced, but this does not have to be a
permanent reduction.

In the situation where you return to work after taking early benefit, your
benefit will be recalculated when you reach full retirement age, and any month
your benefit was reduced by even $1 is removed from the early retirement
reduction calculation.

As an example, if you began to receive your Social Security benefit at the
age of 62, and your full retirement benefit age would be 66, a recalculation
would be made when you attain the age of 66. If you had your benefit reduced
because of the earnings test for 18 months, your new benefit would be
recalculated as though you had begun taking it 30 months early, not 48 months.

Please keep in mind, especially in this era of low interest rates, if you
wait to receive your first benefit check until you are 70, you will receive an
8% increase per year for waiting until you reach the older age.

The law used to be that you could repay, in full, all early benefit payments
you receive when you reach full retirement age and then be entitled to full
retirement benefit. That law is no longer true, but if you have been receiving
the benefit check for less than one year, you are allowed to withdraw your
application, repay all the benefits and reapply at a later date. You are
allowed to do this only once in your lifetime.

(12/13/11)- If you go into the Social Security Web site you will see under
the question "How Much Can I Earn while Receiving Social Security
Retirement Benefits?" the following answer with some additional info
inserted by the editors:

A beneficiary under the full retirement age can earn $14,160 a year and not
lose any benefits in 2011. We will deduct $1 in benefits for every $2 earned
above $14,160. This amount was increased to $14,640 in 2012.

A beneficiary reaching full retirement age in 2011 can earn $37,680 a year
and not lose any benefits in 2011. We will deduct $1 for every $3 earned above
$37,680 until the month you reach full retirement age. This amount will be
increased to $38,800 in 2012

The same earnings limits apply to a child or spouse who works and receives
benefits on your record.

Once you reach "full" retirement age or older you may keep all of
your benefits no matter how much you earn.

(10/25/11)- The U.S. Social Security Administration announced that
retirement benefits for about 55 million beneficiaries would go up by 3.6%
effective January 2. 2012. This will be the first cost-of-living increase since
2009 and it will mean that the average Social Security check will rise by an
average of $516 a year to $14,748. The average monthly check will increase by
$43, to $1,220.

This will also mean that the maximum amount of annual wages subject to
Social Security taxes will rise to $110,100 from $106,800.

An additional 8 million poor and disable people receiving supplemental
benefits will see a 3.6% increase starting this December 30th.

The annual benefit adjustment is based on the Consumer Price Index for Urban
Wage Earners and Clerical Workers. Some economists are suggesting that the index
be changed to the "chained CPI", that reflects a lower rate of
inflation based on the assumption that consumers switch to lower priced items
when faced with price increases.

Social Security beneficiaries' last increase in 2009 was 5.8%. The agency
will pay about $727 billion in benefits this year to retirees, people with
disabilities and surviving spouses and children.

To see what these limits are if you are still working and receiving a Social
Security check, please go to our item dated 8/20/08 below.

(3/30/11)- There has been a change made in the Social Security regulations,
so that it is no longer possible to pay the lump sum difference between what
you received in selecting an early retirement payments when you are 62 and what
you would receive if you had waited for full retirement age. In affect people
could use this option without having to pay any interest on the payments
received, as long as you could make the lump sum repayment in full.

If you claim Social Security before the year you reach full retirement age
your benefit will be reduced by $1 for every $2 you earn over a threshold,
which is $14,160 in 2011.

(12/15/08)- If you were "full" retirement age (age 66 in 2008) you
may keep all of your benefits no matter how much you earn. But, if you were
younger than full retirement age at any time during the year, there is a limit
to how much you can earn before your benefits are reduced.

To see what these limits are please go to our item dated 8/20/08 below.

Your state may help pay for Medicare expenses through the Medicare Savings
Program if:

You have Medicare Hospital Insurance (Part A);

Your monthly income is less than $1,190 for an
individual or $1,595 for a couple (higher in Alaska and Hawaii); and

The things you own (but not your home or one car) are
worth no more than $4,000 for an individual or $6,000 for a couple (higher
in some states)

(8/25/08)- (Editor's note: Please see our item dated 3/30/11 since this is
no longer in force)-Another one of the frequently asked questions to the Social
Security Administration is if you can return your payments that you received
from your early retirement amount, if you make application to receive
"full retirement age" payment without having to pay a penalty for
doing so?

According to Social Security officials you can do it, and it is entirely
legally to do it. You must file Social Security Form 521, "Request for
Withdrawal of Application". You can go onto the ssa.gov site and download this
form.

When you return your past benefits, you won't owe any interest, and there is
no adjustment for inflation. You also may be able to recover federal income
taxes you paid on those benefits. Internal Revenue Service Publication 915 has
instructions and worksheets on this matter.

It is our understanding that the repayment must be done in one lump sum, but
check with your local Social Security office on this question.

(8/20/08)- The most frequently asked question of the Social Security
Administration (over 600,000 times in 2007) was "How much can I earn and
still receive my Social Security benefits?"

If you are under your "full retirement age" when you first receive
Social Security payments, and if you have earned income, $1 in benefits will be
deducted for each $2 you earn above the annual limit. In 2008, the limit is
$13,560.

In the year you reach your "full retirement age", $1 in benefits
is deducted for reach $3 you earn above a higher limit, which is $36,120 in
2008. Then, starting with the month you reach your full retirement age, the
deduction ends.

Probably the toughest question to answer is the one: "Should I start
taking my reduced benefits at 62 or wait to get the higher amount when you
reach your full retirement age?" Please keep in mind that you can wait to
receive your first check until you are past your "full retirement
age", and be rewarded with a higher payment for each year that you wait.

The Social Security Web site has calculators to help you arrive at an
informed decision in this matter. Click on "Calculate your benefits"
on the home page to get to the calculators. There are several different
calculators on the site which deal with different questions on this issue.

(1/10/08)- The maximum amount of earning subject to the Social Security tax
rose to $102,000 for 2008 from $97,500 in 2007. Of the estimated 164 million
workers who will pay Social Security taxes in 2008, nearly 12 million will pay
more because of this increase, according to the Social Security Administration.

The Social Security tax rate remains at 6.2%, so that the maximum that can
be withheld for Social Security from your paycheck is $6,324. The Medicare wage
base remains "unlimited" earnings at a tax rate of 1.45%.

The maximum amount that an individual can put into his/her regular IRA or
Roth IRA has been increased to $5,000 in 2007 from $4,000 in 2007. Those who
are 50 years or older in 2008 can put away a "catch up" additional
amount of $1,000 for a total of $6,000 in 2008, when the "catch up"
amount was only $500 in 2007.

The 401(k) limits stay the same in 2008 as they were in 2007, namely $15,500
for those under 50 years of age, and up to $20,500 for those who are over 50.

(5/17/00)- On April 7th, 2000 President Bill Clinton signed into law a
measure that eliminated the amount of income someone in the age category of
65-69 could earn without having his or her Social Security benefits reduced.
Under the prior law beneficiaries had their Social Security benefits reduced by
$1 for every $3 they earned over $17,000. The new law is retroactive to January
1, 2000 and will affect some 800,000 people in this age category. The new law
does not change the rules governing individuals who take early retirement at
age 62. Those individuals lose $1 for every $2 earned over $10,800 a year.

Once over 70 the earnings restrictions do not apply even under the old law.
Please keep in mind however that you can increase the amount of your benefit if
you delay taking the Social Security payments until you reach an older age. To
determine your delayed retirement credits you may use the following
computations:

Year of birth -----------------------------Annual percentage rate

1930

1931-1932

1933-1934

1935-1936

4.5%

5 %

5.5%

6%

If you are interested in earning the special credits instead of receiving
current benefits you must call the Social Security toll free number at
1-800-772-1213, and notify them that you do not wish to receive your check.

I received a letter on Monday April 10, 2000 advising me of the change in
the law. I certainly was impressed at receiving this notification so soon after
the law had been passed. I did not want to receive my check so I decided that I
would notify the Social Security system of my decision. I work in the mid-town
area and I had never been to my local office which I was advised in the letter
was located at 757 2nd Avenue in Manhattan. I had registered for Medicare by
mail so I had never even visited my local office. When I went to the office I
saw that it was clean and not overly crowded. I was advised by a polite
security guard who I showed the letter to that I had to go over to line #2.
There were about 10 people already waiting on line #2. The people on the line
did not have to stand, but rather were seated in comfortable enough chairs. I
asked the guard approximately how long would I have to wait and he politely
told me that he guessed about 1/2 hour. I decided that it would be more
efficient for me to call the 800 number.

When I called the 800 number it was automatically answered on the 3rd ring.
I was given 6 different options to choose from, but since none of the items
were pertinent to my problem I dialed 0 and waited for an individual to talk to
about my problem. I only had to wait about 2 minutes before a Ms. Parker got on
the line. She listened politely to what I said, and then she replied that since
the change was so new she would have to make an inquiry as to what the process
was in my situation. She asked me if I had time to hold on while she made the
inquiry and I said I did have time. It did take her about 12 minutes to get
back to me, and she did apologize for the long delay. Since the computer was
not programmed for my situation she told me that she would notify the computer
center in Jamaica not to make my payments. If however I did get a payment in
May, that all I need do was return it along with a note that the payment was
made in error. I felt that she had been quite polite with me and since I
realize how new this situation is, it still had to be worked out. In general I
felt that the system had worked well under the circumstances.

In updating the above paragraph, when I received my May bank statement I
noticed that I had been credited with the Social Security payment that I had
requested not to be paid to me. On May 17, 2000 I called the Social Security
number 1-800-772-1213, and reported to a Ms. Stackowitz that I had received the
payment that I had requested not to have been paid. She was very polite and
cooperative as she listened to my story. She told me that there were two
possibilities for me to follow in this situation. Under the first possibility I
could return the overpayment by personal check to the North Eastern Program
Service Center at 1 Jamaica Center Plaza, 155-10 Jamaica Ave. Jamaica, N.Y.
11432-3830, along with a note explaining what had happened. Under the other
possibility I could wait for the Notice of Overpayment, and return the money
with that Notice. In checking the records Ms. Stackowitz indicated that the
Notice was sent to me on May 5, 2000. Since I had not received any Notice from
the Social Security Administration I put a check in the mail to them on May 17,
2000. I will keep you informed as to the results of returning the overpayment.

The wage base maximum upon which the 6.2% Social Security tax is based will
increase in the year 2000 to $76,200 from $72,600 in 1999 and $68,400 in 1998.
Thus you could be taxed on an additional 5% of your earned income in 2000 over
the earned income maximum level for 1999. This means that you may pay up to
$4,724 in Social Security taxes in 2000.

On the positive side, beginning in January 2000 retirees will receive a 2.4%
increase in their benefits checks over the 1999 level. Please keep in mind that
effective January 2000 Congressmen and the President will be receiving a 3.4%
raise. The 1999 increase over the 1998 level was 1.3%. There are over 44
million people receiving Social Security benefits as of September1999. The
average monthly check will rise to $804 from $785 in 1999.We would like to
point out however that the 2.4% figure trails the true expenses for the
elderly. The cost of medical care is rising at a 3.7% rate, and prescription
drug prices are rising at a 6.2% rate. These inflation numbers are much more
relevant to the costs incurred by the elderly.

Beginning January 1, 2003 changes will take place that will effect
"Full Retirement Age". Those born before 1938 will continue to have a
Social Security "Full Retirement Age" of 65. For those born after
1938, the Full Retirement Age will rise in monthly segments. To compute what
your Full Retirement Age is add 2 months on to the age 65 for each year past
1937 that you were born. Thus for those born in 1938 the Full Retirement Age
becomes 65 years and 2 months. If born in 1940 it becomes 65 years and 6
months. For all those born in 1960 and later your Full Retirement Age will
become 67 years old.

Full Social Security benefits are paid to beneficiaries who retire at age 65
but payouts are reduced for those who start collecting at an earlier age. You
can apply for your retirement check at age 62, but it will be 80% of the amount
you'd receive if you waited until 65; at age 63 it is reduced by about 13 1/3
percent; and at age 64 it is reduced by about 6 2/3 percent. Beginning in the
year 2000, the early retirement benefit for a 62-year old will be decreased an
additional 1 % per year. Starting in 2003, if your full retirement age is 67
and you retire at 62 your benefits will be reduced by about 30 %. At age 63 it
will be reduced by about 25%. At age 64 it will be reduced by about 20%. At age
65 it will be reduced by about 13 1/3% and at age 66 it will be reduced by
about 6 2/3 %.

Some people chose to delay their retirement past their Full Retirement Age.
In that case you can increase your Social Security benefits in 2 ways. Each
additional year you work, up to 70 years of age, adds additional earnings and
credits to your Social Security earnings record. In addition, your benefits
will be increased by a certain percentage if you delay retirement. For those
born in1929-1930 the yearly increase is 3 %. For every 2 years thereafter the
percentage increase is .05%. Thus if you were born in 1937-1938 the yearly rate
of increase is 6.5%; if born in 1943 or thereafter it is an 8% yearly increase.
Even if you decide to delay your retirement be sure to sign up for Medicare 3
months before you become 65.

When you work and pay Social Security taxes (called FICA on some pay stubs),
you earn Social Security credits. Most people earn the maximum of four credits
per year. If you were born after 1929 you need 40 credits to be able to get
retirement benefits. Your credit record allows for interruptions if you stop
working. Once you resume working your credit record will add any new credits to
the old ones you previously earned.

Generally, out of every dollar you pay in Social Security taxes:

70 cents goes to a trust fund that pays monthly
benefits to retirees ,and their families and to widows, widowers and
children of workers who have died;

19 cents goes to a trust fund that pays for the health
care of all Medicare beneficiaries

11 cents goes to a trust fund that pays benefits to
people with disabilities and their families.

The administrative costs are paid from the trust funds described above and
are about one cent for every Social Security dollar collected.

The amount that you earned, and the number of credits that you have amassed
will also determine the amount of the Social Security check that you receive.
Social Security will give you a personalized benefit estimate at your request.
To obtain a print out of this estimate call 1-800-772-1213. Ask for form
-7004 (Request for Earnings and Benefit Estimate Statement). It takes about 4-6
weeks before you get back the requested information. The Social Security's web
site is located at www.ssa.gov. Unfortunately we can not link you to this site,
so if interested, use this URL to go to the site on your own.